MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8 MINUTES OF REGULAR MEETING
July 9, 2025

The Board of Directors (the “Board” or “Directors”) of Montgomery County Municipal Utility District No. 8 (the “District” or “MUD 8”) met in regular session, open to the public, on Wednesday, July 9, 2025, at 9:00 a.m., at the Walden Yacht Club, 13101 Melville Drive, Montgomery, Texas 77356, a designated meeting place located inside the boundaries of the District, and the roll was called of the duly constituted officers and members of the Board, to-wit:

John Tryon President
John L. Patton Vice President
Margie Barlow Secretary
Randolph C. Moravec Treasurer/Investment Officer
Michael White Assistant Secretary

All members of the Board were present, thus constituting a quorum. Also attending were Mark Miller of Municipal Accounts & Consulting L.P. (“Bookkeeper” or “MAC”); Messrs. Justin Abshire and Conner Murphy of Quiddity Engineering (“Engineer” or “Quiddity”); Mr. Philip Wright of Hays Utility North Corporation (“Operator” or “Hays North”); Mr. Ray Geiselhart, Director for Montgomery County Municipal Utility District No. 9 (“MUD 9”); Messrs. Andy and Jeff Lynch of JT Lynch Company, LLC (“JT Lynch”); Mr. Elliot M. Barner, attorney, and Ms. Barbara Hankins, paralegal, of Radcliffe Adams Barner PLLC (“Attorney” or “RAB”).

The President, after finding that the notice of the meeting was posted as required by law and determining that a quorum of the Board was present, called the meeting to order and declared it open for such business as may come before it.

PUBLIC COMMENT

The President opened the meeting to public comment. There being no comments, the President directed the Board to proceed with the agenda.

APPROVAL OF MINUTES OF JUNE 11, 2025 REGULAR MEETING

The President then directed the Board to the approval of the June 11, 2025 regular meeting minutes. A discussion ensued.

Upon a motion by Director Moravec, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board approved the minutes of the June 11, 2025 regular meeting minutes, with corrections.

TAX ASSESSOR-COLLECTOR’S REPORT

Mr. Miller reviewed with the Board the Tax Assessor-Collector’s Report for the month of May 2025, a copy of which is attached hereto, including past monthly collections and credits as reported by the Tax Assessor-Collector.

Mr. Miller went on to note that 97.03% of the 2024 taxes have been collected as of May 31, 2025.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the Tax Assessor-Collector’s Report, as presented.

BOOKKEEPER’S REPORT

Mr. Miller presented and reviewed with the Board the Bookkeeper’s Report, a copy of which is attached hereto, including the current fund balances, expenditures and investments of the District.

In response to a question from Director Moravec regarding an entry for Administrative Revenue (penalties and interest) of the District’s General Operating Fund, Mr. Wright explained that such entry reflects a reimbursement to a builder for the repair of an old manhole that was not such builder’s responsibility to repair.

A discussion ensued regarding the Unclaimed Property Report. Mr. Miller reminded the Board and the Attorney that funds were sent last month in the amount of $330.00 to the State Comptroller’s Office (“Comptroller”).

Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the Bookkeeper’s Report, as presented.

OLD WALDEN FIRE STATION (“OWFS”)

Director Moravec requested that the Board next consider the agenda item under the Attorney’s Report related to the OWFS, including the agreement for listing such site with JT Lynch.

Mr. Andy Lynch updated the Board on JT Lynch’s tour of the OWFS and their opinion on the sale of such station. An extensive discussion ensued regarding the best approach to marketing the property for sale.

In response to a question from Director Tyron regarding the respective amounts of the written bids requested by Quiddity for demolition of the OWFS, Mr. Abshire stated that Arcosa Construction Services provided the lowest bid in the amount of $28,000.00. A discussion ensued. It was the consensus of the Board that the Engineer request updated bids that include costs associated with the removal of the foundation.

Director Moravec next reminded the Board that the OWFS Committee (the “Committee”) previously recommended the engagement of JT Lynch for broker services to assist in the sale of the OWFS. Director White then asked Director Patton to share his opinion on whether to engage a broker and market the OWFS at this time. Director Patton explained that in his opinion, the Board was rushing into listing the property for sale of the OWFS.

Upon a motion by Director Moravec, seconded by Director Barlow, followed by Director Tryon then calling for a vote, with four (4) Directors voting aye and Director Patton abstaining, the Board approved engaging JT Lynch for broker services and requested the Engineer seek updated proposals for the demolition of the OWFS, as presented.

Messrs. Andy and Jeff Lynch exited the meeting at this time.

ENGINEER’S REPORT

Mr. Murphy then presented the Engineer’s Report, a copy of which is attached hereto.

Mr. Murphy updated the Board on the Lift Station Nos. 5, 6 and 7 Rehabilitation Project. Mr. Murphy stated that CFG Industries (“CFG”) is expected to complete the rehabilitation work on Lift Station No. 6 this month, then mobilize to begin rehabilitation work on Lift Station No. 5.
Mr. Murphy stated that due to weather, three (3) impact days are accredited to CFG’s requested eight (8) impact days for this period. A discussion ensued. Mr. Murphy then presented CFG’s Pay Estimate No. 1 in the amount of $113,400.00 and stated that the project is approximately 17% completed. A discussion ensued.

Upon a motion by Director Barlow, seconded by Director Moravec, after full discussion and with all Directors present voting aye, the Board approved CFG’s Pay Estimate No. 1 in the amount of $113,400.00, as presented.

Mr. Murphy next provided an update regarding MUD 9’s Buckingham Water Treatment Plant (the “WTP”) Generator Project (the “Generator Project”). Mr. Murphy stated MUD 9’s engineer received six (6) bids; Texan Mutual and Industrial (“Texan”) submitted the lowest bid for a diesel fuel-powered generator at a cost of $353,169.00; and McDonald Municipal & Industrial submitted the lowest bid for a natural gas-powered generator. Director Patton stated the current bid does not address the sufficient storage tank size requirement and Board approval would be required for such additional expense. Mr. Murphy then stated that MUD 9 awarded the contract to Texan, contingent to the District’s consent to such award, pursuant to the agreement between the districts for Alternative Water Supply Facilities. An extensive discussion ensued and it was the consensus of the Board that the districts purchase the diesel fuel-powered generator. Mr. Murphy recommended the Board concur with MUD 9’s award of the contract for installation of a generator at the Buckingham WTP to Texan based on the bid proposal presented. Mr. Murphy reminded the Board that the District’s share of the project is approximately $176,584.50 (50%).

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board concurred with MUD 9’s award of the Generator Project to Texan, as presented.

Mr. Murphy next presented to the Board a request to abandon a utility easement (the “UE”) located between Lots 31 and 32 in Block 9 of Walden on Lake Conroe, Section 2. Mr. Murphy stated that the property owner intends to replat Lots 31, 32 and 33 into two (2) lots to construct two (2) homes on such lots. Mr. Murphy noted that such lots were previously occupied by one (1) home and a pool, which was demolished after flooding during Hurricane Harvey. Mr. Murphy further stated that the property owner is prepared to pay all necessary legal and engineering fees associated with the District’s abandonment of the utility easement. An extensive discussion ensued regarding the necessity of such easement and whether the District needed an easement from the property owner in exchange for the abandonment of the UE. Mr. Murphy recommended that the Board approve the abandonment of the UE, subject to payment of all costs with RAB and Quiddity’s preparation of the documents necessary to abandon the UE.

Upon a motion by Director Moravec, seconded by Director White, after full discussion and with all Directors present voting aye, the Board approved the Engineer’s Report, including the abandonment of the UE, as recommended by the Engineer, as presented.

OPERATOR’S REPORT

Mr. Wright next presented the Operator’s Report, a copy of which is attached hereto.

Mr. Wright reported that 769 customers within the District are currently receiving electronic billing statements. Mr. Wright further reported that there were sixteen (16) new customers paying electronically, of which five (5) elected to receive paperless billing.

Mr. Wright next reported that the Water Accountability Ratio for the District and MUD 9 was 96.53% for the past billing cycle.

Mr. Wright reported no new taps installed in the prior month and a total of 1,853 connections to the District’s Water Distribution System. Mr. Wright stated that four (4) accounts were disconnected due to delinquency, and after a discussion with the Board, the Operator will update the Operator’s Report to include the cut-off reference relating to homeowner/rental.

Mr. Wright updated the Board on the lots owned by the districts located on Walden Road, which the Board directed the Operator to clear of brush and debris. A brief discussion ensued. It was the consensus of the Board that the Operator inspect such lots on a quarterly basis and perform landscaping maintenance as necessary, but no less that every six (6) months.

Mr. Wright then reported that the Walden Marina has a water line that had been recently damaged and that the customer had such line repaired once they discovered the damage.
Mr. Wright explained that such marina incurred a $1,300.00 water bill as the result of such damage and requested an adjustment to such water bill. Mr. Wright noted that were the Board to apply the District’s Leak Adjustment Policy, such bill would be reduced to $640.00 after such bill is recalculated by applying the District’s lowest water rate tier to the amount of water usage and removing certain fees and penalties. In response to a question, Mr. Wright noted that Walden Marina provided evidence that the water line was repaired. A discussion ensued and it was the consensus of the Board to adjustment Walden Marina’s water bill in accordance with such policy.

Mr. Wright updated the Board regarding a sink hole that had recently developed on Lake Estate Drive. Mr. Wright stated that after inspection of such drive, Hays North confirmed that the adjacent bulkhead had not been compromised, but that the storm sewer line that outfalls through the bulkhead had separated into two (2) segments, resulting in the sink hole. Mr. Wright stated that Hays North successfully installed a new coffer dam and plug and applied sealant at minimal cost to the District.

Director Tryon requested that Hays North provide an update regarding the total dissolvable solids (“TDS”) levels at the WWTP. Mr. Wright reported that the TDS remains stable.

Upon a motion by Director Barlow, seconded by Director White, after full discussion and with all Directors present voting aye, the Board approved the Operator’s Report, including an adjustment to the Walden Marina’s recent water bill to the amount of $640.00, in accordance with the District’s Lead Adjustment Policy.

Mr. Miller exited the meeting at this time.

STATUS OF WATER SMART PROGRAM APPLICATION, INCLUDING RESOLUTON APPROVING SUBMITTAL OF WATER SMART APPLICATION FOR INCLUSION IN ASSOCIATION OF WATER BOARD DIRECTORS (“AWBD”) WATER SMART PARTNERS PROGRAM (“WATER SMART RESOLUTION”)

Mr. Wright explained that the application for inclusion in Water Smart Program was submitted to the AWBD. A brief discussion ensued regarding the requirements for inclusion in such program, which includes a requirement that the District make two (2) presentations regarding water conservation planning. It was the consensus of the Board that Director Moravec contact to the Montgomery Independent School District to inquire about scheduling one (1) such presentation at the Madeley Ranch Elementary School.

SECURITY AT DISTRICT FACILITIES

Director White updated the Board on his research into companies that would conduct an assessment of the District’s facilities protections against cyber attacks. A discussion ensued and it was the consensus of the Board to accept the proposal submitted by Red Tiger for the assessment of such protections, in the amount of $8,750.00.

Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the assessment proposal from Red Tiger.

MISCELLANEOUS REPORTS

Regarding the WCIA, Mr. Geiselhart, a member of the WCIA Board, provided an update on the status for the General Manager’s position, stating three (3) interviews have been scheduled this week, including Mr. Jim McClellan, who has currently been appointed as acting general manager.

Mr. Geiselhart, who is also President of MUD 9, updated the Board on a wastewater excursion in MUD 9 that was caused when Xfinity, who has been installing fiberoptic cable in Walden, damaged a wastewater line. Mr. Geiselhart stated that Hays North made the repairs to such line and that MUD 9 is currently seeking payment for such damages from Xfinity.

Mr. Geiselhart next noted that MUD 9 has not approved a recent request for payment for the District’s Browning WTP Ground Storage Tank Project (the “GST Project”); and that in his opinion, the AWS Facilities Agreement between the districts is not clear as to MUD 9’s obligation to pay for a share of the costs of such project. An extensive discussion ensued regarding the GST Project and the provisions of the AWS Facilities Agreement concerning the sharing of costs. In response to a question from Mr. Geiselhart, Mr. Barner explained that MUD 9’s general counsel did reach out, but that such counsel was unavailable when Mr. Barner returned his call. Mr. Barner noted that he will connect with MUD 9’s general counsel to review such agreement and determine if such agreement needed to be revised to address this issue.

ATTENDANCE AT THE ASSOCIATION OF WATER BOARD DIRECTORS’ FALL SEMINAR AND MID-WINTER CONFERENCE ON JANUARY 23-24, 2026

The Board discussed attendance at the AWBD 2025 Fall Seminar (date unknown at this time), and the 2026 Mid-Winter Conference to be held in Houston, Texas on January 23-24, 2026.

Upon a motion by Director Patton, seconded by Director Tyron, after full discussion and with all Directors present voting aye, the Board approved attendance to the AWBD 2025 Fall Seminar and the 2026 Mid-Winter Conference to be held in Houston, Texas on January 23-24, 2026.

DEVELOPMENT STATUS OF DISTRICT UNDER TEXAS WATER CODE SECTION 49.23603 FOR 2025 TAX YEAR

Mr. Barner explained that it is time again for the Board to determine whether the District is considered to be a “developing” or “developed” district, as defined in Texas Water Code
Section 49.23603. Mr. Barner reminded the Board that such determination affects how the District’s proposed 2025 Tax Rate for 2025 is calculated. A discussion ensued regarding the District’s development status, which has been previously determined to be “developing” pursuant to Texas Water Code Section 49.23603. In response to a question, Mr. Barner stated that he will discuss such determination with MUD 9’s general counsel and the District’s Financial Advisor.

All consultants and Mr. Geiselhart exited the meeting at this time, leaving only the Board and RAB in attendance.

ATTORNEY’S REPORT

Director Patton reviewed certain action items that RAB is responsible for completing with Mr. Barner and the Board, including: a recent request from a customer regarding the hardness of water produced by the District; withholding of payment by MUD 9 for the GST Project; and the timing of the distribution of the Board’s meeting minutes. Mr. Barner went on to explain actions he is taking to ensure that items such as those noted above are resolved.

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned at 10:52 a.m.

PASSED AND APPROVED this the 13th day of August, 2025.

Secretary, Board of Directors